China swiping Taiwan’s tech: Chipmaking secrets snatched?

February 16, 2024
1 min read

TLDR:

Taiwan’s top diplomat in the US, Alexander Yui, has accused China of ‘cheating’ and ‘stealing’ semiconductor chipmaking technologies from Taiwan. Yui alleges that China is trying to rival Taiwan’s prowess in semiconductors through dishonest means, including intellectual property theft. China denies these claims and maintains that its technological achievements are made through self-reliance and innovation. However, Yui remains skeptical of China’s ability to develop next-generation processors given US efforts to restrict technology transfer to Chinese chipmakers. China has reportedly resorted to hiring specialists from Taiwan and Samsung to develop these technologies in-house.

In a recent interview with Reuters, Taiwan’s top diplomat in the US, Alexander Yui, accused China of ‘cheating’ and ‘stealing’ Taiwan’s semiconductor chipmaking technologies. Yui claims that China is trying to rival Taiwan’s expertise in semiconductors through dishonest means, including intellectual property theft. He stated that China does not follow the rules and resorts to cheating and copying to advance its capabilities. Taiwan has previously investigated several Chinese companies suspected of poaching semiconductor engineers and other tech talent. In the early 2000s, China’s Semiconductor Manufacturing International Corp was found guilty of stealing process technologies from Taiwan’s TSMC. However, China denies any wrongdoing and emphasizes its commitment to self-reliance and technological innovation.

Yui expressed skepticism about China’s ability to develop viable next-generation processors as early as this year due to US efforts to prevent Beijing from accessing advanced technologies. US companies are restricted from providing technology to certain Chinese chipmakers, including SMIC, because of their involvement with China’s military. Yui questioned the progress of Chinese companies that have invested billions of dollars, suggesting that they have failed to make significant advancements. He also highlighted that the development of 5 nanometre and 7 nanometre process nodes is so sophisticated that it is virtually impossible for anyone to steal them. Instead, China has reportedly resorted to hiring specialists from Taiwan’s TSMC and Samsung to develop these technologies in-house.

The US government has accused China of using its market power and control over supply chains to coerce countries into transferring strategic technologies. Additionally, China’s extensive cyber theft has been identified as a major threat to US technological competitiveness. However, the sophistication of the 5 nanometre and 7 nanometre process nodes makes it highly unlikely for them to be stolen. This situation has forced China to seek expertise outside its borders, resulting in the hiring of specialists from leading chipmaking companies.

Latest from Blog

Go toTop